Masternodes are full nodes that hold the entire record of the blockchain. Masternodes are the foundation of the Beldex blockchain that help validate transactions, send messages via BChat and route your connection through BelNet.
The greater the number of masternodes, the more secure the network. Masternodes help verify new blocks and play an important role in blockchain governance. Masternodes differ from full nodes in that validators can stake their coins on masternodes regardless of the consensus mechanism used.
Before POS, masternodes on the Beldex network aided in the validation of blocks while miners generated the blocks.
With the gradual transition of the network to a POS consensus, miners were deprecated and masternodes were able to generate blocks and validate transactions.
Why should you set up a Beldex masternode?
There are several reasons why you should set up a Beldex masternode. Here, we list the top 5 reasons why Beldex masternodes are a great opportunity to generate passive income.
1. Low Hardware Requirements
When it comes to setting up a blockchain validator, Beldex masternodes have some of the lowest hardware requirements.
Beldex masternodes currently require around 30-50 GB of disk space for the entire history of the Beldex blockchain.
The Beldex network currently has a blockchain size of 10.8 GB. To further reduce blockchain storage requirements, Beldex Research Labs is researching ways to reduce transaction and proof size. This basically means, the storage requirements to set up a Beldex masternode is going to remain low for a very long time.
2. Optimal Collateral
Beldex has an optimal collateral requirement of 10000 BDX.
While the collateral is lower, Beldex also takes into account the security of the network by locking the collateral for a minimum of 30 days when unstaked.
At ATH, the collateral amounted to $1716 USD while the value of block rewards increased proportionately.
3. Passive Rewards
Users can earn passive income by staking BDX on masternodes.
They earn daily rewards based on the number of masternodes in the network.
4. Competitive Returns
Beldex offers a competitive return on collateral for validators when compared with other staking coins.
These returns are also based on the number of masternodes in the network.
Does this mean returns are reduced when more masternodes are added to the Beldex network?
Not necessarily. With 1135 masternodes, the ROI stands at 58.35%. The ROI was 50% more when there were 50% less masternodes in the network.
This was the principle by which the masternode rewards were designed. Thus, even if 1000 masternodes were to be added to the network, the returns would still be 29.17% with the current price of BDX.
5. Benefits of Early Adoption
BDX price discovery is at an early stage as the ecosystem is still developing.
Thus, the benefits of early adoption will include the benefits from a positive price discovery as the utility of BDX on BChat and BelNet increases.
Thus, there are several benefits to early adoption as the network grows and expands.
What happens when you set up a Beldex masternode?
- Validators: By staking BDX on masternodes, users can become validators on the Beldex network. They can validate the transaction and earn rewards from it.
- Fast & scalable: When the masternode count increases, the network becomes fast, reliable, and scalable. It helps improve the speed of the validation process. Masternodes not only validate blocks, but also work as the backend infra for BChat and BelNet. On BChat, masternodes are used as message routers. The messages you send via BChat are routed through the masternodes and reach their destination. On BelNet, masternode relay your connection from one router to another, and then to the exit nodes.
- Securing your funds: Keeping your funds in exchanges or third-party custodial wallets or staking platforms may not offer you with the best of privacy or security. So staking your BDX on decentralized masternodes using the Beldex Electron Wallet (PlayStore, AppStore) will always be secure and you can earn from it too.
Requirements to Set Up a Beldex Masternode
Here are the latest software and hardware requirements for setting up a Beldex masternode.
Software - Ubuntu 18.04
Storage - 30-50 GB
Ram - 2-4 GB
CPU - 1 Core
How to Set Up a Beldex Masternode?
There are two ways to set up Beldex masternodes. Users can either set up masternodes using a VPS or choose to stake on a masternode staking platform.
To set up the masternode using the Beldex Electron Wallet, users need to follow these steps.
- Download the Beldex Electron Wallet (PlayStore, AppStore).
- Users should have a minimum of 10,000 BDX (+fee) in the wallet to set up a masternode. Transaction fee is very minimal, thus an additional 2-5 BDX should suffice.
- Click on masternode tab and choose the registration option.
- Before setting up the masternode, one should rent a VPS (Virtual Private Server) or a dedicated server. The VPS helps keep your masternode online 24/7. If your masternode goes offline, it will be deregistered.
- You can rent a VPS from any hosting service providers like AWS or Scaleway.
- Once you’ve rented a VPS, login to the VPS using your registered username and password.
- It will open the terminal on your system.
- Now paste the following five commands shown below on the terminal and press enter.
- The following command gives your system access to the deb packages using the server key.
curl -L https://deb.beldex.io/pub.gpg | sudo apt-key add -
- Copy the following command. Paste it into the terminal and press enter. This will locate the deb packages to be installed.
echo "deb https://deb.beldex.io/apt-repo stable main" | sudo tee /etc/apt/sources.list.d/beldex.list
- Copy and paste the next command & press enter. This command is used to add the deb packages to your system.
sudo apt install ca-certificates
- Copy and paste the next command & press enter. This will update the deb packages.
sudo apt update
- Copy and paste the next command & press enter. This will configure the masternode.
sudo apt install beldex-master-node
- Wait for your node to synchronize with the Beldex blockchain.
- Once the synchronization is complete, you will receive a message that indicates the same.
- Then type the following command on the terminal. This will prepare your node for registration.
- Then copy your wallet address from the Electron Wallet and paste it into the terminal.
- A string will be generated. This is used to register your masternode.
- Copy the string and paste it into the Masternode Command Registration box (This can be found under Masternode > Registration in the Electron Wallet).
- Click the register button and your registration will be completed.
- To check your registration, click the ‘My Stakes’ option.
- You can see your staking BDX there.
To check your masternode public key and the status of your masternode, enter the following command into the terminal.
Common Roadblocks When Setting Up a Masternode
While setting up the masternodes, users usually come across the following hiccups. They are,
- Wallet Synchronization: Ensure that you’ve got a good WiFi network. Wallet synchronization is delayed if your internet is slow. The user's network should be stable to set up the masternode.
- Node Synchronization: Your node should synchronize with the Beldex blockchain. Issues with node synchronization happens due to overload (when several nodes connect to a single RPC node to register). In this case, users need to click on the settings tab in the Electron wallet and change the remote node host. Three RPC nodes are available. If one is overloaded, you can choose a node from the remaining two. It will help synchronize your node faster.
- Cannot Connect Remote Node RPC: This warning shows up either when an RPC node is overloaded or when you enter an incorrect wallet address. Go to settings and change the remote node host. If not, check that the wallet address that you entered in the terminal and the one in the Electron wallet you’re using to register the the masternode are the same.
Beldex Masternode Data Partners
Masternode data partners provide data about the Beldex masternodes. Here you can check the following details such as the
- Total number of masternodes in the Beldex network.
- Active masternodes in the network.
- Reward earned daily, weekly, and monthly.
- Total BDX locked in the masternodes for collateral.
- Masternode cap value.
- Frequency of reward distribution.
Beldex masternode data partners are,
- Masternode Online: MNO is a coin tracking and information service provider for masternodes. MNO provides the most precise and complete data about masternodes.
- Masternode Buzz: Masternode Buzz provides the details about Beldex masternodes and other information such as our exchange partners, the current price of BDX, and 24h price change, etc.
Masternode Staking Partners
Masternode staking partners help the users stake their BDX coins on their platform. Instead of setting up their own masternode, one can prefer staking with our masternode hosting partners. It will help reduce the masternode cost and setup time. Users can easily stake their BDX.
There are two types of staking options available. They are,
- Cold Staking: In cold staking, users require a minimum balance of 10,000 BDX in their Electron wallet.
Users need to create an account on the staking partner's platform.
Then, they need to deposit the required fees and deploy their Beldex node using their wallet address.
Cold staking does not require the user to transfer BDX from their wallet to the staking platform. Thus, this kind of staking is also known as non-custodial staking.
- Custodial Staking: Custodial staking involves transferring your BDX to the staking platform to set up a masternode. Pecunia and Perfect Nodes offer custodial staking solutions for Beldex masternodes for a competitive fee.